Sales of personal computers in Japan jumped more than 30 per cent to a record 9.94 million last business year, reflecting Japan's growing appetite to surf the Net, industry data showed on Tuesday.
The Japan Electronic Industry Development Association (JEIDA) said domestic PC sales in the year ended in March surged 32 per cent, and predicted a further increase this year.
Amid an Internet boom among consumers and an information technology revolution at companies, sales for 2000-2001 will likely rise 15.7 per cent to 11.5 million units, it said. Some analysts are even more optimistic, foreseeing a 20 per cent jump in PC sales this year.
PC shipments in the January-March quarter totalled 3.14 million, up 30 per cent from the same quarter a year earlier. That was the first time sales surpassed three million units in any quarter, JEIDA said.
Behind the growth was a sharp rise in first-time PC buyers wishing to surf the Internet and exchange e-mail, while steady demand for replacement models and falling PC prices also stoked demand, an official at the group, whose members include 18 computer makers operating in Japan, told a news conference.
He predicted sales of PCs for individual use will increase 20 per cent in 2000-2001, while sales to companies will rise by 13 per cent.
Yet, it is hard to foresee a day when all Japanese have their own PCs, given the current popularity of using mobile phones as a handy tool to go online, he said. Consumers will also be able to access the Net through other tools like Sony Corp's PlayStation2 home video game console, he added.
Still, analysts are optimistic about prospects for Japan's PC market, predicting double-digit growth over the next few years.
Individuals are leading the way in spreading the use of PCs here. I think the diffusion rate here will be coming closer to that of the US, letting Japan enjoy a healthy market expansion in the coming years, said Mr Masahiro Nakanomyo, a senior analyst at Tokyo-Mitsubishi Securities.
Mr Nakanomyo predicted Japan's PC sales could increase about 20 per cent this business year, followed by double-digit expansion over the following three years.
Corporate demand will show relatively stable growth, since info-tech spending still lacks steam amid a tepid recovery in Japanese corporate earnings, he said.
Internet use in Japan, the world's second-biggest PC market, has been held back by the relatively low number of home computers and high telecommunication connection charges.
But strong sales raised the percentage of households owning a PC to around 28 per cent at the end of 1999 from 20 per cent a year earlier. Still, that figure is half the estimated 50 per cent of US households with PCs in 1999.
